Global Markets React to Profit Reports and Economic Data
A wave of optimism swept through global markets on Thursday, driven by better-than-expected profit reports from major companies like Morgan Stanley and United Airlines. The positive sentiment was tempered, however, by concerns over China’s struggling economy and its potential impact on global growth.
China’s Economic Woes Weigh on Markets
Despite efforts by Beijing to boost the property market, Chinese stocks fell on Thursday. The Hang Seng index in Hong Kong dropped 1% to 20,082.63, while the Shanghai Composite index shed 1.1% to 3,169.38. Investors are anxiously awaiting China’s economic growth data for the April-September quarter, due to be announced on Friday. Economists predict annual growth of around 4.5%, short of the government’s target of 5%.
Japan and South Korea See Mixed Results
In Tokyo, the Nikkei 225 index lost 0.7% to 38,911.19 after Japan’s government reported a 1.7% decline in exports from a year earlier in September. South Korea’s Kospi slipped less than 0.1% to 2,609.30. However, Australia’s S&P/ASX 200 added 0.9% to 8,355.90, buoyed by strong economic data.
US Stocks Rally on Profit Reports
On Wednesday, US stocks surged after Morgan Stanley and United Airlines reported stronger-than-expected profits. The S&P 500 picked up 0.5% to 5,842.47, while the Dow Jones Industrial Average rose 0.8% to set a record at 43,077.70. The Nasdaq composite added 0.3% to 18,367.08. Morgan Stanley’s CEO credited a “constructive environment” in its global businesses, while United Airlines announced plans to return up to $1.5 billion to shareholders through stock buybacks.
Energy Stocks Steady Amid Oil Price Volatility
Energy stocks held steady on Thursday, despite recent losses. Exxon Mobil ticked up 0.3% after oil prices fell back amid receding concerns over a potential Israeli attack on Iranian oil facilities. However, worries about demand due to China’s slowing economy continue to weigh on oil prices.
Currency Markets See Shifts
The dollar strengthened to 149.78 Japanese yen, while the euro fell to $1.0859. As investors navigate the complex landscape of global markets, one thing is clear: the road ahead will be shaped by the interplay between economic data, profit reports, and geopolitical tensions.
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